CUSTOMER LOYALTY IS NUMBER ONE

By
Education & Training with Performance Development Strategies

There is one very important leading indicator for your real estate business.  Many of you did comment that on my last post that it is the most important.  I totally agree.  And don't just take my word.  We have the words of world renouned management consultant Peter Drucker.  He says that the purpose of business is to create and keep a customer.  Without customers there are no sales or profits.  Since most of us agree that customer loyalty is most important let's do a deep dive into customer loyalty and how to create it.

Have you included goals for customer loyalty scores in your strategic plan?  Creating a customer is done through a clear message and marketing but keeping a customer is based on performance. Don’t spend all your time on marketing for new customers while neglecting your current customers. A loyal current customer is the cheapest and most effective form of marketing.

A company that says it separates itself from others by service usually does not know what that really means. As an example, it seems that most businesses are focusing on customer satisfaction to determine their customer service measurements. This measurement is flawed and often falls short of actionable expectations.

Companies also make a mistake in the method of measuring the voice of their customer. Asking people to write a rating on social media is MARKETING not measurement. Measurement is consistent, private, and asks for the good, the bad, and the ugly. This gives management a dashboard for continuous improvement.

Satisfaction surveys are unable to predict customer behaviors because they are built on faulty foundations. Many organizations assume that high levels of satisfaction translate into customer loyalty when, in fact, customer satisfaction ratings are more closely linked to your customers’ perceptions of your service attributes rather than to the value gained by those services or your service compared to competition.   It is all about the perceived value proposition.

Satisfaction is a measurement of, “I expected it and I got it; therefore, I’m satisfied.” If this were translated into a grading system, satisfaction could easily translate into a grade of “C” on any report card. The desired score is obviously an “A” and A’s always equate to loyal customers. A’s imply that customers got more than they expected, and their expectations were exceeded in some way. Some of you might call this a great client experience.  Based on what is truly important to customers, they received more value from you than from your competitors.

Perceived value as defined by customers (as opposed to being satisfied) creates loyal customer relationships, and customer loyalty is the best predictor of your future strength and growth potential. The value you provide to your customers is always compared to the value your competitors provide; therefore, value is your customers’ perception relative to similar services in the marketplace—your competitors!

The best way to create perceived value in the eyes of your customer is to always exceed their expectations.

 

Generations in the workplace

In summary, create a system to survey every customer on each transaction or service. You will know if you are continuing to exceed expectations and if the measurement starts to fall you can immediately adjust. Loyal customers are your least expensive form of advertising and it can best be summed with the survey question, “How likely are you to recommend or product or service to your friends?”  For a similar post on our web site see LOYAL CUSTOMERS WILL LEAD TO FUTURE GROWTH.

Let us help you do a better job measuring the voice of your customer?

Contact us to learn more

or call 914-953-4458.

 

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Re-Blogged 2 times:

Re-Blogged By Re-Blogged At
  1. Roy Kelley 03/03/2019 01:00 AM
  2. Gabe Sanders 01/06/2019 10:00 PM
Topic:
Real Estate Best Practices
Location:
New York Westchester County
Groups:
Coaching and Mentoring
Tags:
customer loyalty in westchester ny
customer loyalty is a leading indicator for business growth
keeping customers based on performance
how likely are you to recommend

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Ambassador
1,708,639
Debb Janes EcoBroker and Bernie Stea JD
ViewHomes of Clark County - Nature As Neighbors - Camas, WA
REALTORS® in Clark County, WA

So true. Treat them like like gold. Seriously, those relationships are gold in a business where referrals are so important. Plus, it feels good to go above and beyond for people. 

Dec 31, 2018 07:49 AM #16
Rainmaker
2,894,689
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Grant,  Loyalty is so important in our business.  I get lots of referrals from past client and helps business to grow.

 

Dec 31, 2018 10:14 AM #17
Rainmaker
1,727,293
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Lise - thank you.  Have a great new year.

Joyce - yes, that is the name of the game.

Sally and David - the quality of those referrals are always much better.

Nina - Yes it is and it shows with your reviews.

 

Dec 31, 2018 10:37 AM #18
Rainmaker
1,727,293
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Joan - thank you. Have a Happy New Year.

Amanda - the referral they give are some of the best ones.

Brian - that is certainly true on both parts.

Debb and Bernie - yes those people customers are gold and will bring more gold.

Will - I think we are all agreed.  It is strange that some businesses don't act that way.

 

Dec 31, 2018 11:50 AM #19
Rainmaker
5,021,899
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Thanks so much, Grant. This is excellent advice to share.

Happy New Year!

Dec 31, 2018 02:07 PM #20
Rainmaker
3,006,829
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Grant I just wanted to stop in and wish you a very Happy, Healthy &  Prosperous New Year. I was thrilled to have finally met you in Boston. I always enjoy your posts and advice and look forward to more next year, Endre

Dec 31, 2018 04:43 PM #21
Ambassador
3,645,031
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Grant I operate under the premise of, if you think you are exceeding customer expectations, then you stand a chance of meeting their expectations.

Dec 31, 2018 05:37 PM #22
Rainmaker
4,366,389
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Wishing you and your family  Happy, Healthy ,Prosperous 2019. I hope you will have a wonderful year.

Jan 01, 2019 05:36 AM #23
Ambassador
1,829,792
Hannah Williams
Re/Max Eastern inc. - Philadelphia, PA
Expertise NE Philadelphia & Bucks 215-953-8818

I agree 100% Grant Schneider so important

Happy New Year & Keep on Smiling

Wishing you the Best in 2019

Hannah

Jan 01, 2019 06:17 AM #24
Rainmaker
3,884,921
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Grant, Happy New Year, and wishing you a Healthy and Prosperous 2019!  

Jan 01, 2019 06:19 AM #25
Rainmaker
1,727,293
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Roy - thank you. Have a Happy New Year.

Endre - likewise it was great meeting you and Diane.  Have a great new year.

George - yes that is like the thought go for 110 and be happy to get 100.

Gita - Wishing the same to you.

Hannah - Happy New Year and enjoy all those string bands today.

Joan - Have a happy new year.

Jan 01, 2019 10:33 AM #26
Rainmaker
1,029,429
Sheri Sperry - MCNE®
Coldwell Banker Residential Brokerage - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Hi Grant Schneider - Constant communication while exceeding client satisfaction is always my goal. I exceed my service based on every call I make to my client. Happy New Year! 

Jan 01, 2019 12:08 PM #27
Rainmaker
5,021,899
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Related image

Jan 01, 2019 01:10 PM #28
Rainmaker
2,354,774
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

I want to wish you and your family a special 2019, Grant.  May it be all you wish it to be!

http://www.myrljeffcoat.com

Jan 01, 2019 01:41 PM #29
Ambassador
3,645,031
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Grant just stopping by to you and your family a very happy and prosperous new year!!!

Jan 01, 2019 03:07 PM #30
Rainmaker
1,727,293
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Sheri - good communication which includes listening is key.

Roy - Happy New Year!

Myrl - thank you.  I wish you a Happy New Year too.

George - thank you, the same wishes to you

Jan 02, 2019 08:27 AM #31
Rainer
128,677
Mike Baltierra
Rise Realty - Corona, CA
Full Service at Your Service Realtor-Corona CA

I'm glad Gabe reblog your post. Such great advice. I need to start working on that survey list. I agree that we need to pay attention to our past clients because they are our loyal customers.

Jan 07, 2019 07:20 AM #32
Rainmaker
1,727,293
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Mike - thank you for reading.  Those past clients are gold.

Jan 08, 2019 06:43 AM #33
Ambassador
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Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

I have no clue how I missed this one, Grant! Another spot-on post from you!

Customer acquisition is certainly NOT cheap so, building loyalty in a raving fan base, is key to a successful business. I wouldn't have it any other way either!

Jan 09, 2019 12:25 PM #34
Rainmaker
1,727,293
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good morning Debe - those those 5 or 10 star reviews are really money in the bank.

Jan 11, 2019 05:49 AM #35
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